Angola to pay last N$640m instalment on its N$5 billion debt to Namibia

WINDHOEK – The government of Angola will by June this year pay the last instalment of N$642.6 million (about US$51 million) of money owing to Namibia, thereby settling its financial obligations under the currency conversion agreement signed by the two countries three years ago. The Bank of Namibia and the Banco Nacional de Angola signed a currency conversion agreement in June 2015 to allow the exchange of the Angolan kwanza and Namibian dollar at the border towns of Santa Clara in Angola and Oshikango in Namibia.

As a result of the conversion agreement, the Bank of Namibia accumulated US$390 million worth of Angolan kwanza (nearly N$5 billion at current exchange rate), which Banco Nacional de Angola committed to repurchase in quarterly instalments until 2019.

“We are pleased with the fact that Banco Nacional de Angola has honoured its commitments in terms of the settlement of its obligations to the Bank of Namibia as agreed between the two sister banks,” President Hage Geingob said, revealing that only about US$51 million is outstanding and payable on June 25, 2018.

Geingob said it was encouraging to note that the relationship between the two central banks has been strengthened since the signing of the agreement.

“The banks have recently agreed to cooperate and undertake benchmarking in the areas of foreign exchange control, financial control, financial markets and monetary policy formulation,” he said after meeting Angolan President João Lourenço at State House in Windhoek. Lourenço was in Namibia on a state visit and for the commemoration of the 40th anniversary of Cassinga Day on May 4.

Geingob said that Namibia and Angola are set to review a currency conversion agreement, with the review expected to take place in June.

“Namibia is pleased that through the commemoration of Cassinga Day we are able to reinforce the historic and long-lasting relationship we share with Angola, as we proceed with the second phase of the struggle,” Geingob said. Geingob noted there were many that criticised the currency exchange agreement between Namibia and Angola, which was initiated in the interest of their economic aspirations.

He thanked Lourenço for the payment gesture, which he says has come at the right time, as Namibia is currently recovering from an economic downturn.

According to him, Angola and Namibia are fraternal neighbours, united by culture and blood. – Additional reporting by APA News